APICS CPIM-8.0 Exam - Topic 1 Question 4 Discussion

Actual exam question for APICS's CPIM-8.0 exam

Question #: 4
Topic #: 1

A company decided not to pursue a business opportunity In a foreign market due to political Instability and currency fluctuations. Which risk control strategy did this business utilize?

AMitigation

BPrevention

CRecovery

DWait and see

Show Suggested Answer

Suggested Answer: B

Prevention is a risk control strategy that involves avoiding or eliminating the sources of risk. By deciding not to pursue a business opportunity in a foreign market due to political instability and currency fluctuations, the company prevented the potential losses or disruptions that could arise from these factors. Mitigation is a risk control strategy that involves reducing the impact or likelihood of risk. Recovery is a risk control strategy that involves restoring normal operations after a risk event occurs. Wait and see is a risk control strategy that involves monitoring the risk situation and taking action only when necessary.Reference:

CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.5: Risk Management

CPIM Part 2 Learning System, Module 4: Execution and Control of Operations, Section 4.3: Risk Management

by Ilene at Mar 10, 2025, 02:08 AM

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Shantay

5 months ago

I’m surprised they didn’t at least try to mitigate the risks.

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Maricela

5 months ago

Currency fluctuations can be a huge deal, smart move!

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Fairy

6 months ago

Wait, is it really prevention? Seems more like avoidance to me.

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Alease

6 months ago

Totally agree, better safe than sorry!

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Malcolm

6 months ago

Sounds like they went for prevention.

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Gary

6 months ago

I’m leaning towards "wait and see" because they’re not taking action right now, but I could be wrong.

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Lavina

7 months ago

This sounds similar to a practice question we had on risk strategies, and I feel like "wait and see" could apply here too.

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Jaime

7 months ago

I'm not entirely sure, but I remember something about prevention being more about avoiding risks altogether.

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Lamar

7 months ago

I think this might be related to risk mitigation since they decided not to enter the market to avoid potential losses.

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Emilio

7 months ago

Wait, I'm confused. Isn't recovery the strategy where you try to bounce back after a risk event? I'm not sure if that applies here. I'll have to review my notes.

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Gail

7 months ago

Okay, I've got this. The company avoided the risk by not pursuing the opportunity, so that's a prevention strategy. I feel confident about this one.

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Craig

7 months ago

Hmm, I'm a bit unsure about this one. Is prevention the right answer, or could it be mitigation? I'll have to think it through carefully.

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Truman

7 months ago

This seems like a straightforward question about risk control strategies. I think the company used the prevention strategy by deciding not to pursue the opportunity due to the political and currency risks.

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Yuette

1 year ago

I think they should have chosen recovery instead.

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Rodolfo

1 year ago

C) Recovery? Haha, good one! You can't recover from a business opportunity you never took in the first place. Definitely a mitigation strategy here.

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Walton

1 year ago

D) Wait and see

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Yuonne

1 year ago

C) Recovery

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Tennie

1 year ago

B) Prevention

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Erick

1 year ago

A) Mitigation

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Jesusita

1 year ago

B) Prevention? Nah, man. They didn't try to stop the political instability or currency fluctuations. They just decided not to engage with that market, which is more like mitigation.

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Lavera

1 year ago

D) Wait and see? Really? That's like playing a game of Russian roulette with your business. Good call on avoiding that risky foreign market.

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Julio

1 year ago

B) Prevention

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Malinda

1 year ago

Definitely, it's better to be safe than sorry.

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Octavio

1 year ago

A) Mitigation

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Geoffrey

1 year ago

Avoiding the risky market was a smart move.

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Donte

1 year ago

D) Wait and see

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Carmela

1 year ago

C) Recovery

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Janessa

1 year ago

B) Prevention

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Glory

1 year ago

A) Mitigation

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Josephine

1 year ago

I agree with Howard, mitigation makes more sense in this situation.

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Howard

1 year ago

I disagree, I believe they utilized mitigation.

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Allene

1 year ago

I think the answer is A) Mitigation. The company weighed the political and currency risks and decided to avoid the opportunity, which is a risk mitigation strategy.

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